KARACHI, Sept 23: Pakistan, eyeing a bigger rice harvest in 2003-04 (April-Nov), hopes to increase exports to a tight global market, trade officials said on Tuesday.
A senior official at the Food and Agriculture Ministry said Pakistan expected to harvest 4.3-4.6 million tons of rice in 2003-04 due to a rise in area and heavy monsoon rains.
Rahim Janoo, chairman of the Rice Exporters Association of Pakistan, said exporters planned to boost sales to take advantage of an expected rise in the world prices after India had suspended exports on falling inventories.
“We hope to cross sales of $600 million this season,” he added. “Our target is to export at least 1.9 million tons of rice during the current season, some 200,000 tons more from what we exported last year,” Mr Janoo said. That compared with a total of 1.72 million tons last season.
Traders in Karachi said they expected increased sales to traditional African, Yemen and Saudi Arabian markets and a breakthrough in direct sales to Iran.—Reuters
“Our share in Saudi market has increased to 19 per cent last year from 11 per cent and we estimate 25 per cent market share this year,” said an exporter in Lahore.
Exporters see Iran as their potential market, where the government imports at least 800,000 tons of superior quality rice a year to help meet domestic demand of 2.8 million tons.
Mr Janoo said Iran was currently buying the bulk of Pakistani rice through Dubai-based traders, which was more expensive because of third-party involvement and higher freight costs.
“This year they have shown interest in direct purchases,” he added. Iran bought a total of 365,000 tons of Pakistani superior quality Basmati rice in 2002-03 through third parties.
Traders in Karachi said Pakistan’s traditional competitors were facing tight supplies this season.
“Cheaper (rice) sources, including India, are in tight supplies...they will not be very active this season,” Haji Majeed, another rice exporter in Karachi, said.
“China has drought in certain parts of rice growing area, therefore we will not face major competition,” he added.
“Burma (Myanmar) will be in the market but with only 500,000 tons.”